The Hindu Business Line : Air cargo hub in Nagpur cleared for take-off

Nagpur is all set to become home to a major multi-modal cargo hub airport. The Rs 3000 crore project to be completed in four years will add a new dimension to India's capability of handling air cargo. One of the unique features of the project is the development of a Special Economic Zone, adjacent to the airport.

A FEW years from now, Nagpur, a city known for its oranges, will be prominent for an altogether different reason. Slowly, but surely, Nagpur, chosen for being at the country's geographical centre, is on its way to becoming a major multi-modal cargo hub airport.

The Maharashtra Airport Development Company (MADC), headed by the Chief Minister, is in the process of taking over the project from the Airports Authority of India and will be hastening the execution of the ambitious Rs 3,000-crore project.

"We have initiated steps to stick to the deadlines for the different phases of the project. This will be a unique public-private project," said Mr R. C. Sinha, Vice-Chairman and Managing Director, MADC.

The Nagpur airport project will add a new dimension to the capability of handling air cargo. India's air cargo traffic has inched up from 7.97 lakh tonnes in 1999-2000 to 8.4 lakh tonnes in 2001-02 and 10.6 lakh tonnes in 2003-04.

Last fiscal, the cargo traffic touched 12.8 lakh tonnes, representing a growth of 20.8 per cent, the highest in six years.

In spite of its potential, India does not have a hub airport. The decision to zero in on Nagpur can be gauged from the fact that there is no hub airport within a five-hour fly-zone from India (that is, between Dubai and Bangkok), while world over there are clusters of hub airports within one-to-two-hour fly-zone.

Studies have shown that India has the potential to generate 33.60 lakh tonnes of air cargo every year, both domestic and international; the proposed hub airport will take a major slice of this pie.

As per the plan, in the first phase, the MADC will take up the extension of the existing airstrip from 3,200 metres to 4,000 metres, the construction of a second airstrip of 3,200 metres, and the expansion of the terminal building.

"We expect to wrap up Phase-I of the project within two years, which will enable the airport to handle an additional air cargo of about 50,000 tonnes. We are in the process of tying up with banks and other institutions to mop up Rs 300 crore, while the Government has allotted Rs 85 crore," said to Mr Sinha.

As per the master plan, of the proposed investment of about Rs 3,000 crore for the entire project, Rs 1,500 crore will go towards development of the airport and another Rs 1,000 crore for infrastructure.

Due for completion in four years, the two runways will be of 4,000 metres each, that can handle 50 landings a day and handle cargo of one lakh tonnes.

"We need one cargo plane every three days, as each cargo plane carries 100 tonnes of cargo. And this, by our estimate, is not at all difficult," Mr Sinha said.

One of the unique features of the project is the development of a Special Economic Zone (SEZ), spread over 1,357 hectares, adjacent to the airport. As the airport will be developed as an international cargo hub, the SEZ has the potential to attract both domestic and foreign investors to set up units, involving value-added operations in sectors such as manufacture of computer hardware, garments, leather products, pharmaceutical and printing.

"The proposed SEZ has attracted some Information Technology firms. Satyam has indicated that it is interested to set up manufacturing facilities at the zone, for which it will require 100 acres. Other firms have also shown interest," said Mr Sinha.

The total cost of the SEZ project has been estimated at Rs 756 crore, including for land acquisition and infrastructure development. The SEZ will also have a 100 MW captive power plant, a health city and an IT park. Mr Sinha said that "The project has received the in-principle approval and we are waiting for the final approval, before we launch work on the zone."

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